I think that you can add that some of the government contracts make up fairly large chunks of their product licensing revenue. The company has previously stated this, and are obviously trying to diversify their revenue stream to reduce the risk burden that this puts on their operations. Contract loss in this area would have a material impact on revenue, but not be the end of the world.DTL are in a very different sector of the IT industry - take note of the large proportion of license and maintenance revenue that they receive. This is both a positive factor and a risk. Consider what happens if Microsoft decide to change their licensing models in order to increase competiveness - partners such as DTL will need to just suck it up. Also, we need to consider whether the "cloud" will be a positive or a negative for companies that focus on the Infrastructure space. If organisations increasingly decide to not have their own infrastructure but pay a fee to access someone elses, do we believe that DTL will be a winner or loser in this situation?
In reading and listening to some presentations about this issue it would seem that consumers who are not as conscious about price would prefer to have their data hosted in Australia to avoid sovereignty issues. You can take this with a grain of salt though.Will businesses really care whether the infrastructure sits in Australia or overseas?
RV - can you list some of the companies that you believe directly compete with DTL? Does not matter if they are not listed
Possible QLD government contract uncertainly - high value at risk (V-A-R).Results out today, about what I expected. The market did not seem to like it however with the share price falling. I will have to read the full report and listen to the brr presentation to see if there are any hidden nasties I may have missed.
Possible QLD government contract uncertainly - high value at risk (V-A-R).
But why speculate? It is more likely buy the rumour, sell the fact (with the result - profit upgrade).
edit: they're in a good position to win this, however with Campbell Newman on a killing spree up here, who knows what is possible.
As an example of how shareholders get shafted by management, check out the growth of wages as a percentage of revenue over 5 years in DWS, a company which many regard as first class.
Are you referring to all wages or the salary of execs within DWS?
If it's all staff in general, I'd argue that I.T. wages have gone nuts over the last 5 years, so there's good reason for that.
Yeah, I agree on this and wages generally. They won't keep rising at the rate they are, IMO. In fact it wouldn't surprise me if they spend a long time flat or even falling in real terms as the mining boom starts to unwind.
Actually, I.T. wages are growing hugely in Melbourne and Sydney. I look at contract opportunities in Perth and they don't pay as well...
AUSTRALIANS should brace for a "white-collar recession" by early next year with the unemployment rate tipped to rise to up to 6 per cent.
The rise in unemployment is fuelled by redundancies in the financial and IT sectors handed out over the past 18 months, which experts say have so far been hidden from official unemployment figures.
A recent report by Macquarie Bank also found middle-class white-collar suburbs in major capital cities were showing increasing unemployment strain.
The Invisible Unemployment II report showed both Northern Sydney and Inner Melbourne had noticeable rises in their unemployment rates (see graph below).
The eastern suburbs of Sydney, which has the highest proportion of people employed in the finance and professional services sectors (80 per cent), is also charting a decline in employment.
“Redundancy payouts… only last for so long. Thus we suspect this pressure is likely to emerge in the second half of 2012,” the report said.
“As such, we think investors should be prepared for the unemployment rate to hit 6 per cent by early next year.
Give it a bit more time...
Read more: http://www.news.com.au/business/wor...rn/story-e6frfm9r-1226486009556#ixzz286rf6ba7
is this surprising anyone?
I am a contractor in IT and it has been open slayer in Brisbane for the last 3 months
As for the implications for DTL, well not worse than the rest of the economy when people will stop listening to JG and opem their eyes: black clouds gathering for a hell of a storm IMHO
But might not be that bad for stockmarket as per previous experience, stocks can boom in a recession
and crash of mining boom so what is left???, any government redundancies don't really make a big impact - so I can honestly say this has surprised me when talking IT specifically.
Ves, you said:
"RV - can you list some of the companies that you believe directly compete with DTL? Does not matter if they are not listed."
Whilst they may not be go head to toe as competitors, I always compare these companies: DTL, DWS, ASZ, SMX, IFM and HSN.
Suggestion: Look at the growth in revenue, NPAT and wages as a percentage of revenue and you will see a pattern emerge. I regard DTL as the second in the field.
Porty
I am a contractor in IT and it has been open slayer in Brisbane for the last 3 months
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But might not be that bad for stockmarket as per previous experience, stocks can boom in a recession
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